The task the players have to solve is much more complicated with these constraints than without them. The book will be useful to those doing basic research in the theory of repeated games and reputations. Were going to kill the bitch, was one choice missive. Impermanent types and permanent reputations joint with mehmet ekmekci. Request pdf bounded memory and permanent reputations a recent result in reputation games is that after an arbitrarily long history, any equilibrium of the continuation game must be an. Reputation models typically assume players have full memory, yet in many applications this does not hold. The paper by aumann and sorin is a remarkable piece of work but it is not a contribution to the theory of bounded rationality. Bound is, in its purest essence, a simple platformer. Repeated games and reputations university of pennsylvania. They are purifiable using unbounded memory strategies. You have to jump, climb, roll and explore your way through each level. This result implies that reputation is a shortrun phenomenon.
Dynamic strategic information transmission joint with mike golosov, vasiliki skreta, aleh tsyvinski, journal of economic theory, vol 151 2014, pp 304. Bounded memory also arises under policies used by internet platforms to. Bounded memory and incomplete information ideasrepec. Bad reputation under bounded and fading memory, working papers 1527, tulane university, department of economics. Bounded memory and biases in information processing, econometrica, vol 82 no.
Everyday low prices and free delivery on eligible orders. Bounded memory and permanent reputations, journal of mathematical economics, elsevier, vol. Jme journal of mathematical economics vol 49, issue 5. A twosided reputation result with long run players. Amemorybasedmodelofboundedrationality sendhilmullainathan september20,2000 abstract howdomemorylimitationsaffecteconomicbehavior. A memory bound function accesses locations in a large region of memory in an unpredictable way, in such a way that using caches are not effective. In fact, for a particular range of parameters, a bounded memory player may never be able to learn anything at all. I am bound to everyone on this planet by a trail of six people. A twosided reputation result with long run players article in journal of economic theory 1481 january 20 with 9 reads how we measure reads. Bounded memory and permanent reputations request pdf.
Having a permanent record of norm violations is upping the sanction to a whole. Bounded memory, reputation, and impatience ideasrepec. The new egalitarian approach is to rely on memory bound functions. We study a particular class of reputation games and show that bounded memory may lead to permanent reputations.
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